Episode summary
Trump Heads to NATO Summit; Oil Swings as Hormuz Flows Persist | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 15 min
Summary
President Trump heads to Turkey for a NATO summit that is already shaping up as a test of transatlantic ties. The host and a guest argued that Trump’s main goals are likely domestic: showing supporters he can pressure allies, while also pushing NATO members on defense spending and possibly on Ukraine policy. The guest said relations with NATO allies are already so strained that the summit may produce more risk than progress, especially given Trump’s views on Greenland and his willingness to challenge the alliance.
The morning also focused on Ukraine and Russia. The host said Russia launched fresh missile and drone strikes on Kyiv overnight, killing at least 11 people, just before Trump is expected to meet Volodymyr Zelenskyy at the summit. Bloomberg reporting in the segment said Ukraine’s vulnerability is worsening as Patriot shortages deepen and peace talks remain stalled.
Oil markets stayed volatile but contained, with Brent above $72 and WTI near $69 as shipping through the Strait of Hormuz showed signs of recovery and OPEC+ signaled higher supply. The program also highlighted Bloomberg Economics’ view that the Iran war could leave global borrowing costs higher for years, while markets digested a rebound in stocks, renewed Fed-political pressure, and investor attention on SK Hynix’s U.S. listing.
Key takeaways
- The host and a guest said Trump’s NATO summit strategy appears aimed more at domestic politics than alliance-building, with little chance of major positive developments.
- Bloomberg reporting said Russia’s overnight strike on Kyiv killed at least 11 people, underscoring Ukraine’s worsening vulnerability before Trump’s meeting with Zelenskyy.
- Oil stayed in a narrow range as Strait of Hormuz flows persisted and OPEC+ backed more supply, with WTI near $68.25 and Brent at $71.58.
- Bloomberg Economics said the Iran war could keep borrowing costs as much as half a percentage point higher than expected through 2028.
- The guest said NATO allies are already so uneasy with Washington that they have run war games around a potential attack on a NATO country from the United States.
Notable quotes
“The relations with NATO allies are so catastrophically poor thanks to the series of choices he's made, I'm not sure what he can get out of it”
“there's always the possibility of big developments. What I'm not seeing is the possibility of big positive developments”
“oil is fluctuating at a narrow range as flows through the straight of Horamoose persisted and OPEG plus signaled higher supplies”
“The latest forecast show borrowing costs could increase as much as half a percentage point higher than expected before the war across economies”
How the episode opens
Bloomberg Audio Studios podcasts radio news. — Good morning. I'm Karen Moscow — And I'm John Tucker. Here are the stories we're following today.
Well, John, we begin with a crucial NATO summit in Turkey. President Trump heads to Anchora tonight as tensions rise over Ukraine, Iran, and military spending. We get more with Bloomberg's Dan Williams in Jerusalem.
Turkey has the second biggest military in NATO after the United States. And we have a US president who's quite openly looking to draw down uh the US presence in NATO, the US contribution, certainly when it comes to Europe. That's something that's really troubled European powers, not not least given what is perceived as a rather warm approach that Trump has been taking to the Russian president.
And Bloomer's Dan Williams reports. The US has unsettled its allies in recent months with shifting announcements about reducing its military presence in Europe. Washington has said it will withdraw about 5,000 troops from the continent and reduce the military assets it would provide in the event of a crisis.
And Karen, as for the war in Iran over the weekend, the country's top leadership gathered for funeral prayers honoring Ayatollah Ali Kummeni. The mourers filled the streets chanting death to America and death to Israel. This funeral comes as the US continues negotiations with Thran aimed at reopening the street of Hormuz and curbing Iran's nuclear program.
We also heard from the Israeli Prime Minister Benjamin Netanyahu. He spoke with Fox News yesterday discussing his excellent relationship with President Trump.
Deal or no deal, uh, as long as I'm Prime Minister, Iran will not have nuclear weapons. We've been very lucky that President Trump is leading the United States, leading the free world in this common effort. Uh, and believe me, if I have things that I want to point out to him, uh, and bring my own opinions, I do so in a in a free way.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- nato summit
- ukraine missile attacks
- oil hormuz flows
- opec+ quotas
- ai chips earnings
Companies and tickers mentioned
- Samsung Electronics Co.
- SK Hynix Inc.
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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